High Court Order Preventing Landlord Of Dundrum Town Centre Costa Coffee Outlet From Applying To Wind Up Firm Continued
A High Court order preventing the landlord of the Costa Coffee outlet in Dublin's Dundrum Town Centre from applying to wind up the firm has been continued.
The operators of Costa Coffee cafés in Ireland obtained the High Court order preventing the landlord of the Costa Coffee outlet in Dublin's Dundrum Town Centre from applying to wind up the firm last week.
As reported by The Irish Times, the winding up move came in a dispute over unpaid rent that arose out of the closure of food outlets at the centre due to the COVID-19 pandemic.
MBCC Foods (Ireland) Ltd reportedly sought the injunction restraining Campbell Catering Ltd, trading as Aramark Food Services Ireland, from presenting a petition to wind up MBCC pending determination of the rent dispute.
Mr. Justice Senan Allen made an interim order last week restraining Aramark from presenting the winding-up petition and said that the matter could come back this week.
As reported by The Irish Times, when the case returned to court on Tuesday July 27, Allen continued the order, pending the trial of the action, restraining the presentation of the wind up.
July 27 Developments
Allen's decision reportedly came after counsel for Aramark, Lyndon MacCann SC, said on Tuesday July 27 that claims by MBCC that the lease on the Costa Coffee outlet in Dundrum Town Centre has been frustrated by the pandemic and it has been prevented from carrying out its business despite the fact that, at times during the lifting of lockdowns, Dundrum Town Centre was open are fully denied in a replying affidavit, and that the claim that the lease has been frustrated is "spurious" and something with which his side takes grave issue.
The court reportedly heard that MBCC is prepared to lodge the disputed rent in its solicitor's client account pending the outcome of the full action by MBCC.
MacCann reportedly said that the fact the money is lodged does not provide security for the debt if MBCC goes bust, but his side’s concerns have been assuaged as he had been shown MBCC's 2020 accounts, a copy of which will also be sent to the Campbell side.
MacCann reportedly said that Campbell had not been paid any rent since the start of the pandemic and that the Costa Coffee outlet had closed down before the government closed it, and that his client also had difficulties with this tenant prior to the pandemic.
MacCann reportedly said that whether or not the lease is frustrated, it will end in September and Costa Coffee should have its equipment out of the premises by then.
Gary McCarthy SC, for MBCC, reportedly said that his client will comply with its obligation to remove the equipment.
Allen reportedly approved directions for the exchange of papers and adjourned the matter for mention in November.
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